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UPDATE 1-Cameron in $500 mln subsea deal with Petrobras

Published: 28 Sep 2009 17:17:11 PST

* Deal for 138 subsea trees in Brazilian oil market

SAN FRANCISCO, Sept 28 - Oilfield services company Cameron International Corp struck a $500 million subsea equipment deal with Petrobras in the offshore Brazil market, and Cameron's shares rose more than 1 percent in after-hours trading.

The deal is for 138 subsea trees, which manage the flow in and out of underwater wells, and 18 sets of running tools, Cameron said.

Cameron has a purchase order for the first 111 trees, due for delivery from the start of 2011 to early 2014.

Cameron had raised its full-year profit forecast last month in anticipation of greater demand for subsea systems, in particular orders from Petrobras, as well as from Chevron Corp for work in the Gulf of Mexico. [ID:nN04119128]

Another subsea specialist, FMC Technologies Inc, also raised its full-year forecast after a strong second quarter. [ID:nN28193174]

Cameron shares, after closing up $1.21 to $38.12, rose to $38.44 in extended trade on Monday. The stock is up 86 percent since the start of 2009, compared with 59 percent for the Philadelphia Stock Exchange oil service index .OSX>.